Compulsory real estate insurance
The relations associated with the compulsory real property insurance are regulated by Chapter I of the Special Part of the Law of the Republic of Azerbaijan on Compulsory Insurance. Compulsory real property insurance is used for the purpose of compensating losses that may be caused by damages, destruction or any kind of loss of the real property because of fire or other similar circumstances.
For the aforementioned purpose, the insurance of constructions, residential and non-residential premises, residential houses, buildings and apartments (flats), as well as of the state property the list of which is determined by the relevant executive authority is compulsory.
Compulsory insurance related to residential buildings, residential houses and apartments (flats) is designated to provide compensation for damages caused to constructive elements, rooms, door and window elements, including glass, piping related to water, sewage and gas, as well as heating supply, communication, electricity and other wiring, decorative elements, including all types of external or internal plastering and cover works, walls, ceilings and floors.
The objects of real property which were constructed at places which were not permitted by the laws of the Republic of Azerbaijan, or for which there was passed a decision of the state or local self governance authority on demolition, or real property which remains unfinished or in an emergency condition.